“Without industrialisation, Nepal can’t leap forward”

Kishor Bhattarai wears many hats: he is an entrepreneur involved in industry and agro-tourism, a management professional, and a sportsman. Currently serving as the Charter President of the Lions Club of Kathmandu Corporate Nepal, he has extensive experience in community engagement and social impact initiatives.

He began his career as a Sales Officer at Jawalakhel Distillery in 1997 and has since held various positions, including roles at Himalayan Distillery, General Manager at UB Group, General Manager at Himalayan Brewery and Trishakti Distillery, and CEO of Sagar Distillery. He later ventured into his own business as the Nepal Partner of Spectra Technology. Currently, he is the Managing Director of IDS Group Pvt. Ltd. and has established other ventures such as IDS Technology and Yellow House Agro Farm and Tourism, among others.

Bhattarai completed his high school education at Ratna Rajya School in Kathmandu and holds a Bachelor of Commerce from Nepal Commerce Campus and a Master’s in Sociology from Trichandra College. He is actively involved in social activities as a life member of numerous organisations and previously served as the Vice Chairman of the Corporate Forum of the Nepal Chamber of Commerce. His passion for sports led him to own the sports club, Chitwan Tigers.

HRM Nepal had a conversation with Bhattarai on various issues. Excerpts:

Q: What are your priorities these days, and how are you running your companies?
A: I am currently focused on industrial development, particularly in the beverage industries. My company supplies equipment, technologies and after-sales services to liquor, beer, wine, energy drinks, juice factories and large-scale mineral water factories. We also establish factories on a turnkey basis. IDS Technology, under the IDS Group, provides these services. We have been working in industrial development for the past nine years.
We are also in consultation with Industrial District Management Limited to establish industrial wastewater management on a large scale. There is a lack of industrial wastewater treatment facilities in industrial areas and corridors, and industries are often reluctant to operate treatment plants, even when they are in place.

Recently, we have been working as the national distributor agency for Pentair, a US-based company that supplies dosing pumps to beverage industries. We are prepared to establish microbrewery plants and microbreweries. I am also setting up a new venture in partnership with an Indian company to run a workshop in Nepal, providing after-sales services to distilleries, breweries and beverage companies.

Q: What are the areas of aftersales service?
A: Mainly, the servicing of pumps, conveyor lines, tanks and machinery requires regular cleaning, oiling and checkups. There is a lack of industrial standard enforcement and we should apply international best practices for factory audits. We have been providing technical guideline support, counselling and consulting to the beverage, brewery and distillery industries to enhance product quality. Moreover, we offer financial management procedures and market knowledge to industries through the IDS Group. Specifically, for providing aftersales services, we are setting up a workshop in the near future and will also carry out factory audits as required.

Q: Which are the major projects you are currently involved in?
A: Mainly, there are partnership projects set up on a turnkey basis. We have already established two major beer industries, one of which is Nepal’s top brewery. So far, we have set up seven distilleries across Nepal – in Nepalgunj, two in Chitwan, Anbu Khaireni, Dhading, and in eastern Nepal. Very recently, we are setting up a wine factory and have established a large mineral water factory, along with two juice factories, one cold drinks factory, and three energy drinks factories. We are also planning to supply chilling plants for community dairies.

Q: From where do you import the required equipment and technology?
A: Based on the preference and budget of the client, we import and supply equipment and technologies from Germany and India. German equipment and technologies are quite costly. We also import canning lines from Italy. The latest technology and easily available parts for repair and maintenance are crucial, whether you choose German or Indian equipment and technology.

I have spent 25 years in the liquor industry of Nepal, starting at Jawalakhel Distillery. I joined United Brewery as the General Manager and worked there for five-and-a-half years. During that time, I had the opportunity to launch various products, including White Mischief, Antiquity Blue, Signature and Signature Red. I was a key member in launching Royal Stag, where I was involved in market research and other activities.

Normally, multinational companies excel in product, staff and market management. They invest heavily in Research and Development (R&D). I have experienced the difference in status and strategy after the launch of Royal Stag. When connected with multinational companies, they enforce their code of conduct, standard operating procedures, branding, and sales guidelines, among other things. Liquor is a lifestyle-related product; they focus on personality, perception, and attitude with sales and products. There is a famous quote regarding liquor: “There is a guarantee of only one thing with liquor. If you consume three pegs, you’ll get intoxicated. Otherwise, it can’t be considered liquor.”

In the last 10 years, there has been a practice of non-alcoholic beverages. Being involved in the Nepal Liquors Manufacturers’ Association (NLMA), we have lobbied for government policy on non-alcoholic beverages. I served in NLMA as a member, treasurer, secretary, General Secretary and vice-president. I am currently planning to operate a distillery as well.

Q: Non-alcoholic beverage factories are rapidly expanding. Do you think the government needs a separate policy to address them?
A: We have lobbied for the policy because there are factories producing juices, energy drinks, carbonated water, tonic water and ginger ale. We have competitive water with mineral content, such as Himalayan Pristine water, that can be sold worldwide. Unless the government brings industry-specific standard policies and introduces subsidies, it will be difficult to sustain industries and accelerate further industrialisation. The government should create a favourable climate for Foreign Direct Investment, international technologies and management. We are an import-driven country due to a lack of industrialisation. Unless we adopt the latest technologies and management practices, we cannot be competitive in industrial production.

In fact, no one is working towards industrial development. In countries with rapid industrialisation, they start with human resource development. Universities are aware of market demand and the government provides a favourable climate and incentives for industries, which we sorely lack. Without industrialisation, the country can’t leap forward.

Q: Do you think, we can be competitive in industrialisation considering the cost of production?
A: If there is a will, there is a way. If we look at other industrialised countries, they have huge expenses in electricity, but we can be competitive in this area. Another issue is tax. The government is too focused on recovering tax from raw materials, which is driving up the cost of production in Nepal. This is why I question whether the government has the will to develop industries or not. Due to the latest tax policies, 40 distilleries are on the verge of closure. There was a huge demand for 70 UP earlier, but that segment is gradually disappearing from the market.

Q: Apart from business and sports, you are also interested in agriculture. What are your plans for the agriculture sector?
A: Sport is my hobby and I am passionate about sports such as badminton, basketball, football, cricket and karate. I played ‘A’ Division League Football and was the intercollege champion, leading both the basketball and cricket teams. I started my journey in sports in 1988/89. I became a national karate player and international referee in 1997. I achieved gold medals in the South Asian Okazaki Cup twice and have a record of five gold medals in national games. I was a good player in my time and used to compete in three events – kata, kickboxing and kumite. My contemporaries were Upendra Man Singh and Sangina Baidya. I also own the sports club, Chitwan Tigers. For the development of the sports sector, the government should allow the private sector to spend from their Corporate Social Responsibility (CSR) funds. Due to the lack of a professional sports act in Nepal, only the organisers benefit from organising games.

Recently, I have been involved in agriculture and operating a fish farm in Nawalpur. I have developed a farmhouse on one bigha of land that is being operated as Yellow House, Agro Farm and Nursery. I have also bought 200 ropanis of land in Danda, Nawalpur, for cannabis and citrus (lemon) farming. Once there is a legal framework for cannabis farming, I plan to materialise my plans.

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